Registrations closed for Exchanges in the Netherlands according to AML regulations
Today is the deadline for exchanges and other Dutch crypto companies to register with the Dutch Bank under the new AML rules. The deadline is here: on May 18, unregistered Dutch crypto companies could face penalties if they do not comply with the new Netherlands anti-money laundering laws, passed by the Dutch Upper House on April 21.
According to the Anti-Money Laundering Directive (AMLD5), companies offering custody or crypto-to-fiat services should have registered by today. In contrast, those offering only crypto-to-crypto services are exempt. Months ago, we saw how stringent regulations forced the closure of several crypto services in anticipation of the new AMLD5.
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De Nederlandsche Bank (DNB), the body in charge of regulating financial activities in the Netherlands, will be obliged to comply with the mandates of the Dutch government. However, they will not issue licenses for encryption companies. Instead, paid registration will be mandatory and cost up to € 34,000 per year.
Crypto companies will be under the supervision of regulatory authorities, as will their directors. Therefore, the new legislation requires exchanges and companies to establish risk profiles and strengthen their Know Your Customer rules to assign each risk profile. All transactions will be continuously monitored and reassigned to such risk profiles if necessary. Furthermore, transactions deemed “suspicious” must be reported to the Financial Intelligence Unit.
If you have not submitted a draft application before the entry into force of the law, you cannot make use of the transition agreement and therefore must cease your existing activities. If you are active without being subject to the transition agreement, this may have an effect on the evaluation of your (later) registration application. It will also be in violation and DNB can take enforcement action.
From Nederlandsche Bank
The implementation of AMLD5 of the European Union in the country through the central bank. It has been the subject of discussion due to the cost of the new requirements for cryptocurrency exchanges. Like the new fulfillment fees would be higher than those paid by traditional trust and credit card companies.
